Level 1 Investing: Kaiser

I. What is Kaiser Long Term Health Care?

It is our prime product in providing a long term healthcare beyond our senior years. It provides the needed security and protection for our healthcare needs on our retirement years. This will ensure we  retire with peace of mind as we will be assured that we have money for our healthcare needs.

However, Kaiser is not a pre-need for you can use it as soon as you pay your first investment. It is also accredited by major hospitals such as Makati Medical, St. Lukes, Asian Medical among many others. It is registered and controlled by  Government regulating bodies: SEC-Securities and Exchange Commission, DoH- Department of Health.

When we get our  Kaiser Long Term Healthcare, we actually get not just a Healthcare but also , Life Insurance, and Investment rolled into one. A portion of our funds goes to Mutual Fund  Investment and the funds are managed by no less than the best fund manager in the Philippines. In essence it is a complete financial plan. 

When I was employed, I was given a short term healthcare. It is my protection in case I get hospitalized. I am covered with an insurance that in case I get sick or hospitalized, I have a card I can use to get into a hospital and pay for my bills. It is short term for the company pays it to cover me just for one year and for as long as I am with the company. It is paid every year whether I use it or not. Nothing is retrieved back. It is popularly called HMO.

As differentiated from this short term health care, Kaiser is only paid for 7 Years , and you do not have to pay afterwards. Unlike the Short Term Healthcare, Kaiser Long Term covers you beyond 60 years of age. In fact, for as long as there is fund in your Kaiser Long Term Health Care, you  can continually use it. Not just for hospitalization but for anything, for anyone, anywhere in the world after the  20th year for Kaiser Ultimate . Kaiser also gives you the advantage to retrieve back what you pay if you do not get sick. When it matures, you gain back more than what you have paid. 

II. Why is Kaiser Level 1 Investing

In investing, we learned that there are 3 major factors we have to consider. These are: Amount of money you invest, the Rate of Return , and the Time you allow your money to grow.

On the Rate of Return, we also know that the higher the Risk we take, the higher the rate of return we can have. Since Kaiser is guaranteed to yield no less than 8% interest annually after it matures, then it offers the least risk versus direct investments in the Stock Market. So it qualifies under Level 1 investment alongside Savings Deposits, Time Deposits, Corporate and Government Securities/Bonds. But,  definitely, Kaiser offers the distinct advantage of a relatively higher return than most of these Level-1 Investment vehicles you can ride on. 

Kaiser offers also the advantage of disciplined approach in investing for all our major financial needs: Healthcare for Old age, Insurance Protection, Money for Retirement Needs, Emergency Funds. All Four in One needs which you can start up to invest on with very little amount of money as low as 88 Php per day.

I consider it also as level 1 not just because of the guaranteed growth but also because it also develops the habit of investing. For first time investors, the real challenge is not how to pick the investment vehicle that gives the highest return. The challenge is really how to make sure we keep on investing. In other words, the challenge of a new investor is really to develop the habit of investing.

Finally, I consider Kaiser as the first level of investing for it answers the basic investment goals and it guarantees success no matter what happens to us. If we live long and do not get sick we win. If we get sick while investing, we win. If even on the worst case, that someone who has Kaiser dies or is disabled, he still wins. Why? Because in any of these aforementioned circumstances, you or your beneficiary will have benefits or gains from what you invested in. 

III. Why Do We Start with Level 1

IMG Members who opt to pursue the Business Ownership Program needs to get into Level 1 Investing for we want to do our own investing the proper way. We want  to make sure we follow the Solid Financial Foundation. We want to be financially secured and succeed in our own investing. We do not worry whether the market goes down or up for we are assured that our money will grow no matter how the market moves. We need to Walk the Talk. We have to Model the way of Building a Solid Financial Foundation.

Once we have our Level 1 Investing and we still have extra money for Level 2, then we can proceed with our Level 2 Investing.

What is Mutual Fund? Why is it LEVEL 2?  Read more about it on this Blog Site.

If you want to JOIN IMG, or get your LEVEL 1 Protection, just give us a call or text at 0920-902-1217 or email us at richbenj.santiago@gmail.com.

Be blessed!

Benj Santiago
Senior Executive Vice Chairman IMG
Truly Rich Makers Founder

Why is Mutual Fund Investing Level 2?

Earlier we covered why we call Kaiser Long Term Healthcare as Level 1 Investing. You can review this on this page : Kaiser Level 1

When we define our Personal Financial Strategies (PFS), we were told about the three levels of investing. Kaiser is Level 1 and Premium Deposit Fund (PDF), and Mutual Fund (MF) is Level 2. So let me share about Mutual Funds and Why I consider this to be a Level 2 Investing.

I. What is A Mutual Fund?






For so many years Mutual Funds has already existed but not so many people still know about this. The oldest Mutual Fund I know started in the early 90's (1993). This is the Philequity Fund Inc (PEFI). In the Philippines as of September 30,2010 there are 43 Listed companies in the Philippine Investment Fund Association (PIFA).




But what exactly is a Mutual Fund? On the Rampver Strategic Advisors page it defines Mutual Funds as:

"- Are investment companies that pool money from numerous investors, with the same investment objective. Through the issuance of its shares to the public, the pooled funds are then invested by professional fund managers in a diversified portfolio of securities or investment instruments.

- Shareholders are entitled to a proportionate share in investment income and risk exposure.

- Mutual funds are registered and regulated by the Securities and Exchange Commission (SEC).

- Since mutual funds are not bank products, they invest only in marketable securities and therefore do not need to be covered by the Philippine Depository Insurance Corporation (PDIC).

- To safe guard and protect the interests of the investing public, mutual funds also follow investment guidelines set by the SEC, that includes investment restrictions."

Read more about it on this page Rampver



The Philippine Investment Fund Association definition of a Mutual Fund:" is an investment company that pools the funds of many individual and institutional investors to form a massive asset base.

The assets are then entrusted to a full time professional fund manager who develops and maintains a diversified portfolio of security investments.

People who buy shares of a mutual fund are its owners or shareholders. Their purchases provide the money for a mutual fund to buy securities such as stocks and bonds.

A mutual (fund) can make money from its securities investments in two ways: a security can pay dividends and interest to the fund, or a security can rise in value. The fund passes any dividends, interest or profits on the sale of its portfolio securities, less fund expenses, to shareholders in the form of distributions.

In the Philippines , there are currently four basic types of mutual funds---stock (also called equity), balanced, bond and money market funds.

Bond funds invest primarily in bonds such as treasury notes issued by the Philippine government and commercial papers issued by reputable companies in the Philippines . Having a full basket of only fixed-income securities, bond funds provide capital preservation while maintaining a conservative stance in terms of asset allocation.

Like bond funds, money market funds also have a conservative stance since they have a full basket of fixed income funds. The main difference lies in the term of investments of money market fund investments, which is one year or less.

Equity funds invest primarily in shares of stock issued by Philippine corporations. The dominance of stock issues within the portfolio positions the fund to attain a more aggressive rate of growth.

Balanced funds invest in both shares of stocks and bonds, thereby accessing the growth potential of stocks tempered with the presence of secure fixed-income instruments.

Professional fund managers create value for shareholders by providing superior yields within controlled risk exposures. Certainly, both security selection and asset allocation go a long way in ensuring better long-term rewards for mutual fund investors.

As of September 30, 2010, there are a total of 43 mutual funds in the country, broken down as follows:"

Category

Equity Funds (PhP) 8

Equity Funds (USD) 1

Balanced Funds (PhP) 7

Balanced Funds (USD) 1

Bond Funds (PhP) 10

Bond Funds (USD) 9

Bond Funds (Euro) 2

Money Market (PhP) 5

TOTAL: 43

Learn more about it on this page PIFA


II. What are the MF Companies in the Philippines and Their Performance?

There are 43 Mutual Fund companies and they offer varied types of funds as discussed above. Of these 43 there are 8 listed Equity Fund Providers with 10 Different Kinds of Fund Names of which 9 are Peso denominated and 1 Dollar Fund:

Fund Name NAV Per Share 1 yr. Return (%) 3 yr. Return (%) 5 yr. Return (%) YTD Return (%) N.A.V. History Stock Funds     Primarily invested in Peso securities ATRKE Alpha Opportunity Fund, Inc.* *** 1.3869  n.a.  n.a.  n.a.  14.95%  History ATRKE Equity Opportunity Fund, Inc.* 3.8901  29.35%  26.47%  15.32%  10.31%  History First Metro Save and Learn Equity Fund,Inc.* 5.3724  30.35%  35.64%  24.3%  11.76%  History Philam Strategic Growth Fund, Inc.* 568.88  28.97%  30.54%  20.13%  13.42%  History Philequity Fund, Inc.* 32.9877  37.74%  35.16%  23.53%  15.48%  History Philequity PSE Index Fund Inc.* 4.3257  34.32%  29.57%  19.25%  13.98%  History Philippine Stock Index Fund Corp.* 742.27  38.21%  30.37%  17.56%  15.65%  History Sun Life Prosperity Philippine Equity Fund, Inc. 4.0587  37.62%  29.62%  17.95%  13.62%  History United Fund, Inc.* 3.5911  24.16%  15.18%  11.75%  10.02%  History     Primarily invested in foreign currency securities ATR KimEng AsiaPlus Recovery Fund, Inc.** $1.0135  5.42%  n.a.  n.a.  3.94%  History

The Top  Performer in the last 5 years (2008 to 2013) :PEMI- Top 1. We take pride that this company is a partner companies of IMG through RSA. Check their web page and see more information about them.

This Mutual Fund is really for Long Term Goals which is from 5 years and beyond.

III. So Why is this Seemingly Good Investment Vehicle Level 2?

I would go back to the three (3) investment vehicle levels based on the Risk Return Trade Off. Between Kaiser and Mutual Fund, the Mutual Fund yielded a higher Rate of Return as you can see on the last 5 Year Performance. Mutual Funds have returns that are relatively high at double digit returns in the last 5 years for the Peso denominated funds. Along with this high return is the fact that it entails higher risk. Why? Because there will be a continuous up and down motion of the values of the fund (commonly called as Net Asset Value Per Share-NAVPS). Unlike Kaiser which is fixed income investment you are guaranteed certain value across the years of your investment. Mutual Funds on the other hand can go down like what happened in 2008 when the market went down by as much as 38%. This has been experience gain in 2020.

Moreover, Mutual Fund Investing requires a lot more financial literacy as you have to contend with so many funds (43) to choose from. You need to also have knowledge of how to get in and out and how to monitor the Fund.

And on top of it all, Mutual Fund investing requires also a lot of discipline to investment as the investment amount and the time to invest is heavily dependent on the investors discipline.

If you have the extra money and have acquired the discipline to save and invest, then proceed with this Mutual Fund Level 2 investing.

III. What about PDF?

PDF is our latest Investment Product integrated into Manila Bankers Life Insurance. It works like a MF but the advantage of PDF over MF is that it won't go NEGATIVE returns. While it is integrated as part of Life Insurance coverage, PDFs is independent from the Life Insurance Premium. I highly recommend this especially for the bread winners who does not have sufficient Life Insurance Coverage.

So there you are, the Level 2 Investment Vehicles. Choose what is best for you. Get coached how.

Happy Investing!

God bless!

Why is Direct Stocks Level 3 Investing

People often ask me why I put Levels instead of investment options. Well, for me it is easier to understand if we label each investment options as Levels. I have shared in my previous blogs why Kaiser is Level 1 and Why Mutual Fund is Level 2.

I hope you read them both before you go through this one where I share why I consider investing in Stocks directly as Level 3 type of investing. 

You see, putting levels help us realize that we have to go through the levels properly so we build a Solid Financial Foundation and our Success Rate in investing is assured.I am not saying only invest in Level 1 only, the leveling simply tells us what to prioritize.

So are you ready to know why Investing in Stocks is Level 3? And what is my new favorite (as IMG Partner MyTradePH by Abacus Securities ) Direct and On-Line Broker for Stocks? What should we know about this 3rd Level Investing before we plunge into it?

Let me shock you first with this: 85% of people who does trading into Stocks not knowing why and how to do it and without guidance lose their money! Or, they do not succeed in their investing. Why? Not only because Direct Stocks Investing is high risk (based on Risk Rate of Return Trade off I explained in previous blog)  but also because 

Direct Stocks Investing entails a lot of study and discipline. To better understand this, let me share with you what Direct Stocks Investing is. Direct means you are the one who select what companies to invest in and "directly" makes that decision including when, how much shares you will buy and what broker you will get in. So the responsibility lies on you and along with this responsibility is the need to be literate in the field of stocks investing. By literacy, it means that you need to find time to study what companies has the potential growth on a long term basis, and you have to have time and capability to check and monitor the movement of your stocks.

So the combination of Discipline and Literacy makes Direct Stocks investing Level 3 type of investing compared to Kaiser Level 1 and Mutual Fund Level 2. Because of this, I really like to recommend the Abacus Securities with their MyTrade Apps as my favorite Direct Stocks Broker. Not just because it is convenient but also because, it really provides daily guidance on what we are getting into. But still, you need to have a coach to do it properly. Being a member of IMG-International Marketing Group will enable you (like us) to be guided on what stocks to buy and when to buy.

What else do we need to know about Direct Stocks Investing?  Of the three Levels I personally recommend we plunge into, it is in Level 3 where you get the most excitement. When I attended the Wealth Circle Meeting, Rex Mendoza now the President CEO of PhilAm Life compared investing in direct stocks and investing in mutual funds. It went like this: investing in direct stocks and investing in mutual funds are both investing in stocks equities. So it is both like eating your favorite cake. 

Investing in Mutual Funds is like buying your cake from an expert baker, while buying your Direct Stocks can be compared to buying the ingredients, and preparing the cake yourself. This is definitely more exciting and you can have maximized involvement in your decision making but is definitely risky if you do not have the competency...you might end up having a cake that flops... a stock you buy that you may flop too!

In Stock Investing, my favorites are companies of Henry Sy, The Ayala's, and of Gokongwei. Personal Favorites are AC, BPI- Ayala, SMPH, BDO- (Sy), and JGS, RLC- Gokongwei.

In direct Stocks investing, you have many companies to opt to buy and many brokers to deal with. There are also many segments of industry to choose from. When you buy a stock from the company you become a part owner of that company, but your shares are insignificant, you are just a tiny drop versus what the "Big Boys" put in.. Unlike in Mutual Funds, your money gets pooled together and is invested together and you come into a company together with the "Big Boys".

In Direct Stocks Investing, your 1000Php can buy one company's stock shares, while same amount in Mutual Fund will buy minimum 10 different company shares. Most direct stocks brokers would have their minimum investments peg at 5000 per buy.

So when you invest in Direct Stocks, there will be as many companies you will have to check to know whether your investments are earning or not.

Let me end this up with a Story to better appreciate the difference in the 3 levels of Investing: there were three friends who went to IMG . They were Juan who invested on Level 1 Kaiser, Jose who invested in Level 2- Mutual Funds, and Pedro who invested in Level 3- Direct Stocks. Pedro is really a rock (matigas ang ulo). 

All of them after hearing my talk about proper investing executed what they learn. All of them invested 2647Php but they did it in different levels. When they went out of IMG office they met an accident. The jeepney they rode met an accident and they all died.

As you know the market had been down for 5 consecutive days. Guess who had the most gains in their investment? Is the 2647 of Jose and Pedro still 2647? Definitely lower and it is subject to Estate Tax. In the case of Juan, her 2647 is not just 2647 , not just doubled, not just 10X, but her family gets automatically 202Kx2 = 404K since cause of death is accident, for the insurance portion and the whole 7 years of investing is considered paid.

So there you are. I hope this gives you the glimpse of why I call Direct Stocks Level 3. It is an exciting vehicle to ride and can really yield high earnings for the long term. We just have to make sure we study very well and get coached on how and when to get in or out. Better still, make sure you get into the first two levels first before you put your hands into this level.

Happy investing!

If you want to get into any of these Investment Levels 1,2 or 3 pls feel free to contact me at richbenj.santiago@gmail.com or directly at 0920-902-1217 . I will be happy to guide you succeed in your investments and protection.

And what is exciting is that if you are an IMG Member, you get so many freebies like FREE ENTRY FEE for your Mutual Funds, and FREE Seminars and Daily Information.

JOIN US NOW

God bless!

3 Levels of Investing!

Investing is always tied up with a Goal...and therefore there are different vehicles appropriate for each goal. 

In my investment experience I did three levels of investing. The Level 1 investing is Kaiser LTC, to develop my discipline or habit of investing. Our very first task really in investing is to develop the habit of investing. Then, the next step is to master the fundamental and technical analysis and find the best investment vehicle to achieve high returns. To hasten this, we simply need to find a coach and develop the habit of investing. Invest therefore on what will make sure you succeed.

The Level 2 I have is the Indirect way of Investing in Stocks. This is through Mutual Funds. We allow our money to be pooled "bakas bakas" with many other investors and we allow an expert (Fund Manager) to manage our investments. This will allow us to be diversified with even just minimal amount of investment. Moreso, it allows us play it like the "big boys" through our fund manager. Because we no longer represent just the small amount that we personally invested but we are represented by the total pooled investment which is more significant and really would have impact on total investment in a company the fund manager choose to invest in. 

The 3rd Level is Direct Stocks Investing which I consider is the highest risk and thus requires a closer coaching and monitoring. My favorite broker for this is Abacus Securities with their MyTrade Apps. They come out with daily push notification on our stock picks. We also get  regular training, and coaching so we can achieve the best returns for our hard earned money that we invest. 

As in our own experience, it is exciting to jump into level 3. But, I strongly suggest we do it the proper way... Check out financial planning books on how to do Solid Financial Planning... If you want I can also show you how.... check out MyTradePH.

If you want to Learn and Invest in all 3 Levels of Investments, feel free to contact us NOW at 0920-902-1217 or eMail  richbenj.santiago@gmail.com. We will be happy to guide you and get you started!

God bless us all...


Benj and Fel


PS: Get Educated Before You Invest. Read the details and comparison of each Level of Investment.



How did we Do it?

Fely and Benj Sharing their Mission

Level 2 or Real Estate

This is a Repost from a Blog of MutualFundsPH that is so good I like to share with you. This will help in your decision which investment vehicle to ride on... Mutual funds vs Real estate written by MutualFundsPH on March 9, 2013 in Blog with no comments← older postsnewer posts →


Real estate is another favorite investment vehicle for Filipinos. Rental properties such as condominium units, apartments, townhouses, office spaces, etc. are excellent investments. Raw land also offer market appreciation. But how does real estate compare to mutual funds?

There are pros and cons for both. If you think you should only invest in real estate, consider the advantages of mutual funds that might convince you diversify your investments.

Difference No. 1: Liquidity 

Real estate is obviously not a liquid asset. It takes time to sell real estate properties.
Mutual funds are a lot more liquid. Although most have holding periods of six months, you can pull out your money prior to that for a small redemption fee.

Winner: Mutual funds

Difference No. 2: Leverage 

You can leverage real estate, i.e. you can borrow money to acquire properties. For example you can just make a 20% down payment for a Php1,000,000 property (cash out of only Php200,000). If you sell the property after 30 days for, say Php1,100,000. How much did you earn? Php100,000. What’s your return on investment (ROI)? 10%? Wrong. It’s actually 50% (or 600% if you annualize the gain). Why? Because you only shelled out Php200,000 and made Php100,000. 

You cannot leverage mutual funds. If you buy shares in a mutal fund for Php1,000,000 and its value increased to Php1,100,000 after 30 days, what’s your ROI if you sell your shares? 10% (or 120% if you annualize the gain).

Winner: Real estate

Difference No. 3: Management 

Real estate requires active management. You have to get your hands dirty buying, managing, and selling real estate. It’s a lot of work. 

Mutual funds are professionally handled by fund managers who make investment decisions on your behalf. And it’s very easy to buy and sell shares of mutual funds. If you don’t have time to manage your investments, mutual funds are ideal. Winner: Mutual funds

Difference No. 4: Control 

You have greater control over your real estate investment since you’re actively involved. You can fix up a property to increase its market value, raise your rent, kick out errant tenants, etc.
You have no control over your mutual fund investment since it’s the fund manager who makes all the investment decisions. You do have voting rights as a shareholder, but you don’t have much influence.

Winner: Real estate

Difference No. 5: Returns
It’s hard to find historical data on real estate price and rental appreciation, but numbers thrown around are in the 8%-10% per year range. Rental yields increase by single digits. However, if you invest in foreclosures or buy in a hot property market, you can earn much better returns. And if you earn both rental income and enjoy market appreciation, while using leverage, that’s a powerful combination. 

Returns for mutual funds vary also, depending on the type of fund and the ability of the fund manager. But generally, bond funds generate around 8% average returns while stock funds earn 15%-20% average returns over 10 years.


Winner: Mutual funds in general, but real estate if you really know what you’re doing

Difference No. 6: Risks 

Real estate can be risky. There are many factors like interest rates, inflation, political stability, migration, natural calamities, etc. that affect the prices and rents of real estate. You may also have to contend with fake titles, depreciation, problem tenants, squatters, corrupt government employees, and your own inexperience or incompetence. 

Mutual funds can also be risky. Interest rates, inflation, political stability, etc. also affect the prices of the stocks and bonds that your mutual fund owns. And not all fund managers can consistently generate good returns. But there are far fewer risks than real estate.


Winner: Mutual funds

Difference No. 7: Flexibility

You have a lot of flexibility with real estate. You can hold it, rent it, flip it, fix it, and borrow against it. There are many ways to finance your purchase and many ways to generate income from it. 

The only flexibility you have with mutual funds is to manage your portfolio of funds by rebalancing them such that you keep the same proportion that you want (e.g. 60% in stocks, 30% in bonds, and 10% in foreign-denominated balanced funds).


Winner: Real estate

Difference No. 8: Capital 

You have to pay 10% to 20% down payment to buy real estate. You can borrow the down payment of course and there are ways to purchase property directly from a seller that doesn’t involve making a down payment, but generally you need more capital to get started than with mutual funds. 

You can invest in mutual funds for as little as Php5,000 to Php10,000, and just Php1,000 for additional shares thereafter. 

Winner: Mutual funds

Difference No. 9: Price 

In real estate, you make real money when you buy a property below its market value, like a foreclosure or a pre-selling project. You have a lot more room to negotiate when you buy and sell. 

You buy shares in a mutual funds for the same net asset value (NAV) per share, which is what would be left if the fund sells off all its assets and pays off all its liabilities. So you can’t get a discount when you buy or sell at premium when you sell. Winner: Real estate

Difference No. 10: Diversification 

If you have Php100,000, you can use that as down payment for a property or buy raw land. But you need to raise more capital to buy another property…and another. And by sticking to just real estate, your risk exposure is highly concentrated in the property sector. 

If you have Php100,000, you can buy a single mutual fund, and you’re well-diversified with dozens of bonds and/or stocks, including property stocks. You can invest in bonds and funds of other countries as well. In fact, Php5,000 already gives you instant diversification.

Winner: Mutual funds

Difference No. 11: Taxes 

You pay capital gains tax when you sell real estate. You pay VAT, documentary stamps tax, transfer tax, and registration fee when you buy real estate. You pay realty tax while you own real estate. You pay either a percentage tax or VAT for rental income. 

When you sell your mutual fund shares, your income is exempt from capital gains tax so they’re tax-free. Winner: Mutual funds

Difference No. 12: Time 

Investing in real estate is time consuming. You have to do research, site visits, appraisals, negotiations, documents processing, etc. And that’s just when you buy. It takes a lot of time as well to manage a property and to sell it. 

Investing in mutual funds is quick and easy. Just figure out your investment objectives and risk appetite, and then pick a mutual fund or two that can match what you want. Just fill out a few forms and give out a check or make a deposit. That’s it. When you sell, just fill out another form and you can get your money usually on the same day.

Winner: Mutual funds 

So which is better — real estate or mutual funds? The answer is it should not be an either-or choice. It’s good if you have both mutual funds and real estate in your portfolio.

But if you’re a beginning investor with limited funds or limited time, or both, it’s best to start with mutual funds.

If you want to start up your investments on either of these two, take advantage of IMG Membership. It can save you at least 2% for your Real Property Investments and about 2-3% of your Mutual Fund Investments.

Contact me NOW at 0920-902-1217 or eMail me at richbenj.santiago@gmail.com for your Investment guidance and strategy. It will surely benefit you! And there is more!

Happy Investing...

Level 2 Vs Level 3 Investing

Mutual funds vs stocks

written by MutualFundsPH on March 17, 2013 in Blog with no comments By Rafael Matsunaga (Flickr) [CC-BY-2.0], via Wikimedia Commons with My Notes By Benj Santiago


There are two ways to invest in the stock market — investing in pooled funds like mutual funds (LEVEL 2) or directly buying shares of stock (LEVEL 3). But which is better? Let’s take a look at how each stacks up:

No. 1: Return 

Average returns for stock funds are around 15% to 20% per year. Of course, actual returns fluctuate widely on a yearly basis. But generally, returns are dragged down by liquidity requirements, higher fees, transaction costs, etc.
It’s possible to beat the performance of mutual funds by buying stocks on your own using fundamental and technical analysis (rational decisions, not emotional decisions) and by keeping trades to a minimum.


Winner: It depends. If you know what you’re doing, stocks win. Otherwise, stick with mutual funds.

My Notes: When the market is in upswing, the Direct Stocks beats my Mutual Funds....

No. 2: Risk 

Mutual funds have risk, but are tempered by their inherent diversification and built-in safeguards (investment policies, government regulation, separate custodian, etc.).
Stocks are riskier — you’re on your own (and your emotional mood swings)!


Winner: Mutual funds


My Notes: I definitely agree that is why we call Direct Stocks as Level 3. Higher risk than Mutual Fund but potentially higher returns.

No. 3: Diversification 

You get instant diversification with mutual funds even for as little as Php5,000 or Php10,000.
That same amount of initial capital buys you just a handful of stocks.


Winner: Mutual funds


My Notes: Certainly true and that is a great advantage if you have limited funds to invest.

No. 4: Control 

You have no control over the investment decisions of the fund manager.
You have full control over your own investment decisions as a direct stock investor.


Winner: Stocks


My Notes: Two thumbs up. Excitement and Control is what Direct Stocks is all about. But is this what we really want or gain and security out of our investment?

No. 5: Capital
Most mutual funds require only Php5,000 to P10,000 to invest and just Php1,000 to add more.
There are online stock brokers that let you invest with just Php5,000 but traditional brokers may require more. And you need more money for additional investments.


Winner: Mutual funds


My Notes: Certainly valid point for Mutual Funds.

No. 6: Convenience
Mutual funds have distributors — Certified Investment Solicitors (CIS) — you transact with.
There are online stock brokers where you can easily buy and sell shares on your own.


Winner: Stocks


My Notes: I do not totally agree with the comparison. Having solicitors or brokers is inherent to both whether direct stocks or Mutual Funds. I still find Mutual Fund investing more convenient.

No. 7: Time
It’s easier to evaluate which mutual funds to invest in — past performance, fees, management, investment objectives and policies — just by reading the prospectus and reports on their websites. There’s minimum time and effort involved.
For individual stocks, you have to look at a lot of factors — numerous financial ratios, management, company news, industry analysis, technical charts — by reading annual and quarterly reports, research reports, etc. And you have to do for every stock you want to buy.


Winner: Mutual funds


My Notes: Another double thumbs up for Mutual Funds.

No. 8: Taxes and fees
Mutual funds charge a sales load (around 0% to 5% depending on the amount of investment) with VAT, an annual management fee (1% to 2%), and an incentive fee. If you sell your shares within the holding period (usually within 2 years), there’s a redemption fee (0.5% to 1%). But there’s no tax. 

Stock brokers charge a sales commission (around 0.25% to 1%) with VAT, PSE fee (0.005%), and a 0.01% SCCP* fee. When you sell your shares, you pay the same fees and taxes, plus a 0.5% sales tax.


Winner: Stocks


My Notes: You actually pay more in Stocks if you trade more often as you pay fees to take out or to invest in stocks. In Mutual Fund, the in and out of our stocks is already integrated in the sales load and is done by the Mutual Fund Manager. The management fee is also integrated already in the declared NAVPS.

No. 9: Price
You buy and sell mutual fund shares at their net asset value per share (NAVPS), which is their book value. In the other words, you buy and sell at what they’re actually worth.
You buy and sell stocks at their market price, which is not the same as their book value. So you buy and sell at their perceived worth, based on what the market believes should be the right price. In other words, you can buy at a discount and sell at a premium.


Winner: Stocks


My Notes: This goes the other way around too. Since you may buy based on perception and lose money in the process.

No. 10: Timing
You can time your entry and exit with mutual funds, though prices are updated only once a day. So you can’t really trade mutual funds. 

Prices for stocks are dynamic, changing per hour or even per minute, if they’re actively traded. Of course, there are stocks that hardly move because there are hardly any buyers and sellers. But generally, you can trade stocks and make money faster.


Winner: Stocks


My Notes: I do not agree with this as advantage as I do not promote trading. We go for investing for the long term.

No. 11: Compounding
There’s a greater impact of compounding with mutual funds, since fund managers reinvest dividends (usually) and proceeds from the sale of stocks to keep the net asset value of the fund growing to make more money and entice more investors. 

Since there are minimum board lots with individual stocks, you may not be able to immediately reinvest dividends (and most likely you’ll end up spending them). And if you’re not disciplined, when you sell your stocks, you may not reinvest them at all.


Winner: Mutual funds


My Notes: I agree.

No. 12: Safety
Mutual funds are regulated by the Securities and Exchange Commission (SEC) and are bound by the Investment Company Act of the Philippines. They have to follow certain rules and regulations that restrict what they can and cannot do. And they are structured in such a way to keep investors safe. Of course, there’s still risk and prices can plummet by 40% or more. But it’s hard to imagine losing 100% of your capital. 

Publicly listed companies are also under the SEC and the Philippine Stock Exchange (PSE), which also sets rules. But individual stocks, especially the not-so-known ones, are more susceptible to speculation and insider trading, making it very possible to wipe off your entire capital if you joined the bandwagon.


Winner: Mutual funds. But if you stick to reputable companies, you can avoid this risk. So which is better — mutual funds or stocks? If you’re a new investor, we suggest you stick with mutual funds until you learn more about investing directly in the stock market. And even if you have more investing experience, it’s a good idea to keep the core of your portfolio in mutual funds with an excellent track record, reputable management, and reasonable fees. Then add individual stocks to boost your overall returns.


My Notes: Bottom-line Mutual Funds have a clear advantage over Direct Stocks Investing. However, it is still the investor who will make that decision and allocation. As for me, we invested in both with Mutual Fund as priority and invested on Stocks that are fundamentally strong companies.

If you want to invest on either Properties, Direct Stocks or Mutual Funds, you can do it with great advantage through IMG Membership. You get about 2% Discounts on Real Properties and ZERO LOAD or ZERO ENTRY FEE for your Mutual Fund Investments. And you can get into Direct Stocks too through MyTradePH Apps by Abacus Securities.

If you are interested, call me or Text me NOW at 0920-902-1217 or eMail me at richbenj.santiago@gmail.come and simply tell me what do you want to invest on.

Click this to LEARN Happy Investing !!!

Investing Made Easy for Busy Professionals

We all know and are so busy 
Making Money
But We Really Don’t Know 
the 
WHY and HOW

To Invest 
or 
So Busy We don't have Time to 
Make Money Work for Us…

But

I Can Teach You

How To Invest And Start Up
in Three Levels of Investing

In Less Than An Hour

with Just

P6,000 Each!

PLUS: How I Increased My Cash Flow to have more 
Money to Invest
and 
Finally enabled us to 
RISE from DEBTS!

Bro Bo Sanchez with TRM Mentors Fely and Benj Santiago

I know how it is to be really working hard for the money. And it pains me to see people like you lose your opportunity to make your money work for you. You may also be working for Multi-National companies as Managers, an OFW or a Seafarer. Or, you maybe self employed professionals like Doctors, Lawyers, Accountants and you earn very well but that maybe is all you know! You earn from your jobs but don’t know how to really make your money work for you. You probably do not know how to invest correctly.   Or, you may be investing without a coach or a guide, improperly, and not solidly founded on a purpose and plan. I want you to achieve the highest returns for your investments. I know it is your goal to be able to increase your money line so that you can have money working for you in your retirement years... It is also our PURPOSE … our MISSION to HELP you invest successfully...

You may have a lot of FEAR about investing because of your lack of knowledge or you may have been a victim of a scam that makes you wary of anything to do with investing. Or maybe, you simply do not know how to start and do not have any idea of the different investment opportunities that are safe and has good returns. I know the feeling because I had been in that situation. Fears can actually make you do more mistakes or immobilize you and make you a loser.

Based on a survey, 85% of Filipinos who put their money in the stocks market incorrectly lose their money. Even trained traders lose their money.

I Want You To Invest Successfully!

Many of my friends who retired lost their retirement money in 3 years. Sue, went into failed business and investments for she did not learn how to invest properly and did not have a chance to get coached how to do it. She lost more than P2 Million of her retirement money in a franchised restaurant business. Sue is an Engineer and she does not know anything about the restaurant business. 

Nancy, one of my IMG Business Partners invested also in a failed business investment.

It's a pity that so many ordinary folks, retirees, government workers were duped by an investment scam called Aman Futures.

I had also been scammed for P250,000 in a dubious investment scheme in “cell cards” in 1998.

What Can I Offer You? …

You do not have to go through the same painful experience I had and my friends had. I had learned to fail in the past and I’m using those past experiences as a lesson to show you how I started up correct  investing at age 51 and achieve financial freedom in 4 ½ Years! I will guide you how to Invest Successfully like we did on Three Levels of Investments that will give you Total Peace of Mind. We will guide you and help you execute your safe and secured investing within 24 Hours. Will provide you with a continuing guidance in investing. 

You can experience this too... You can retire and have lots of money to take care of yourself, and your money doesn't get depleted. You can take your whole family, including your grand children on a yearly local tour, and once every two years on a pilgrimage to Holy Land Europe, and enjoy "gelato" in Italy where St. Francis once walked.

Imagine your children and grand children so happy to see you all the time. You have interest income coming from your very profitable investments that can fund all your retirement needs. You have money for your favorite social and civil organizations and you can continually support your church with your tithes and offerings. You had been a wise investor that you can leave inheritance to your children’s children

Let Me Tell You My Story…

Benj and Fely Santiago: Engineers turned Investors and Entrepreneurs

Fely and I are both Engineers by profession. Fely an Industrial Engineer and I am a Licensed Mechanical Engineer. We both worked for Multi-national companies as Managers. And we earn very well but that is all we know! We earned from our jobs but did not know how to really make our income earn for us. In simple terms, we did not know how to invest correctly. Yes, Fely and I tried investing in real properties, in local and US Stocks but it was all unguided, improper, and not solidly founded on a purpose and plan. What we thought as investing turned out to be accumulating liabilities. Instead of putting money into our pocket, our investments took more money from our pocket and further strained our cash flow. 

Fely and I lost a lot of opportunity due to our lack of know-how in investing in the tune of more than P100 M ! Yes, you read it right…we lost a 100 Million Peso Opportunity in investing. Because I did not give investing any serious focus. Fely and I never sought help, nor study investing seriously. We were so comfortable earning money from employment. 

Fear of the unknown is one of our reasons why we did not get into investing seriously. I felt that getting into investment is dangerous and a lot of people lose their money. And I also thought that we need a lot of money “tons of money” to get into investing.

Fely and I tried to invest on what turned out to be a scam and we lost our money.

Fely featured in Bro Bo Sanchez's Kerygma Magazine

Investing requires literacy. IMG gave that to us. We owe our investing know-how in Mutual Funds to IMG and Rex Mendoza, and our Direct Stocks know-how through Edward Lee. The link to them is Bro Bo Sanchez through his Truly Rich Coaching Seminar. Investing became so clear and simple: It’s Like Eating Cake!

Our journey towards the correct and purposeful investing happened this way .. We bought and read books by Bro Bo and Robert Kiyosaki, and many other books. In fact we have all the books of Bro Bo Sanchez about money and investing. We started with the “8 Secrets of the Truly Rich”, “Choose to be Wealthy”, and I love this book “ My Maid Invest in Stocks”. Fely and I attended the Financial Coaching seminar by Bro Bo in July of 2007. Then finally, we met in person Rex Mendoza, and Edward Lee who made a very strong impact on how we do our investing today. We executed what we learned and get ourselves updated and educated on a continuing basis.

Benj and Fely Santiago with Rex Mendoza (Leftmost)

Fely and I put to action what we learned from Bro Bo's Truly Rich Coaching Seminar and got into a company called IMG-International Marketing Group. Fely and I were coached how to manage our finances, how to get out of debts, and how to invest properly. We did not just learn…we started to do what we learned. And with discipline and consistency, we continued to do it since then till now.

Then, after two years, we started to share our experience with our family and friends, encouraging them to follow our example. In about 3 years after my retirement, we were able to get out of our bad debts, had profitable investments, and were able to start to generate passive income, which reached P153,678/month in 2012. Read our full story how we got out of debt on this book:

In about 10 Years with IMG, Fely and I have been able to change more than 17,640 people's lives, in 23 Countries all over the world. We also touch people’s lives in our mission as Financial Counselling Ministry Head of Bro Bo Sanchez PICC Feast. We also help out people build a solid financial foundation for their future through the Wealth Circle of Bro Bo Sanchez. Fely and I are now, debt free, happily retired business owner with profitable investments travelling the world coaching people how to achieve the same.

Fely is endorsed by Bro Bo in this Book

Warning: DO Not Delay Your Investing…
TIME FOR ACTION

Do not PROCRASTINATE.  I want to help you in your investing. I can guide you and hold your hand every step of the way towards your financial freedom. All you have to do is call us up or email us (details below) and we’ll discuss HOW you can achieve what we have done, and set your course straight towards your financial goals.

KEY BENEFITS YOU WILL GAIN

* You will receive a total guide and personal coaching on the “why and how” of correct investing. You will learn the 3 different levels  of investments that is right for your purpose and financial goals.. Personal coaching will assure your success.

It will really feel like you are just

“Eating cake”.

* You will be able to execute in less than 24 hour the various, safe and profitable ways of investing in the first level Investment called Kaiser, second level Mutual Funds and third level Direct Stocks with a minimum starting investment of only P6,000 each!

* You will be able to define the proper way and the most effective way to allocate your investments. You will be able to define for yourself and your family your short term and long term financial strategies that will allow you to be financially free!

* Sorry to disappoint you, I do not give guarantee that your investment will have no risk and earn immediately. It is not going to be a get rich quick scheme or a risk free investment... But I guarantee, if you follow my system which I personally experienced you can be financially free in less than 5 years.

* You will also have your privilege to get into a business opportunity of helping people save and invest properly. A business that you define your own quota, your own time, and YOU are your own BOSS! You own the business! A business you can start up with less than 9999PhP!

    WHAT PEOPLE SAY ABOUT OUR PROGRAM

 "I am a High School Graduate and never finished college. My family is poor, and I know the hardship of being poor. I do not want my children to have limited education like me. I want them to finish college. I want them to have a better life. And I am so happy I learned how to manage my finances and invest properly with a solid financial plan and strategy through Bro Benj and Sis Fely. It really works. I invest now in Mutual Funds and I earn passive income from my own business by simply sharing and helping other people how to properly save and invest” –Matin Leano

“I worked as engineer for Intel. After an early retirement from Intel, I put up a business (franchised outlet of meat products) together with my friends from Intel who were also given their early retirement package. After two years, I have not recovered my investments. I am glad I learned from Bro Benj and Sis Fely how to invest on safe and solid inestment vehicles (Kaiser Ultimate and Mutual Funds). I even got a bonus of being able to create my own business. Now, I have a very profitable business helping people save and invest and earn extra money I can save and invest. It really is amazing for I only invested insignificantly low amount against the investment I made in our failed franchise business.”- Nancy Martin

SO HOW MUCH WILL IT COST YOU?

You probably would think this would cost you “lots of money" to learn how to invest and start it up immediately. It’s true that this COULD cost you more than P15,000 just for the seminars and investment planning.

But that’s not necessary, because it is part of our mission to help people save and invest correctly you’ll enjoy a FREE 1-hour investment consultation if you call me within the next 24 hours upon reading this note at 0920-902-1217 or email me at richbenj.santiago@gmail.com NOW!!!

BONUS! BONUS! BONUS!

As an added BONUS, if you decide to join of our program, you will receive Monthly, and a Quarterly Market Updates from the best Fund Manager with a combined total value of more than P20,000... All for FREE!

Call me NOW to set up your appointment! Send me an eMail NOW at richbenj.santiago@gmail.com Better yet, call me at 0920-902-1217… I would guarantee you a response within 24 hours no matter where I am… Just tell me I want to “invest like eating cake”…

See you soon!

God bless you,

Benjie and Fely Santiago

PS: Don’t procrastinate. Learn how to profitably invest NOW! Call me at 0920-902-1217 or email me at richbenj.santiago@gmail.com and we’ll sit down together and help you define your investment strategies for your future! Click this NOW

Benj Santiago with Bro Bo Sanchez on European Marian Pilgrimage

PS2. In the past we failed in our investments too. Today, we’re enjoying our life because of our investments. YOU can experience this too. Call me at 0920-902-1217 or email me at  richbenj.santiago@gmail.com and tell I want to “invest like eating cake”.

Benj and Fely Santiago in Sydney Hillsong Conference 2013